The Nasdaq Composite climbed 1.07% on Monday after the June Consumer Price Index showed inflation declining faster than Wall Street anticipated.
The S&P 500 gained 0.46%, while the Dow Jones Industrial Average barely budged, slipping 0.05%.
The inflation number that moved markets
June CPI fell 0.4% month-over-month, landing below consensus expectations.
The Nasdaq Composite traded around the 26,011 level during the session. When inflation cools, the math on future cash flows for tech companies gets more attractive, because discount rates drop. Historically, cooling inflation prints have disproportionately benefited the Nasdaq relative to the Dow, because the Dow is weighted toward industrials and financials that are less sensitive to rate expectations.
